As Bitcoin approaches a 2 Trillion marketcap and is beginning to look like a possible contender in the reserve currency space, regulators are getting jittery. We knew this was coming. And, yes, regulatory threats must rank as one of 2021’s biggest concerns for crypto markets. But ultimately nobody can stop Bitcoin. Sure, they could put a few obstacles up and derail bull sentiment, but no matter what they throw at it, bitcoin will prevail.
One of the best analogies to explain this is to imagine that we are back in the mid 90s. A new technology called email is just starting to gain traction. The US Postal Service begins to worry that email will pose a serious threat, and that soon people may not be buying postage stamps. As email goes more and more mainstream, the government finally passes legislation outlawing email.
How would that have turned out? Do you think email would have disappeared?
Simply put, bitcoin is the email of money. Write the amount you want to send, write the address to send it to, and boom — value transferred. To any where in the world.
The Post Office analogy extends further too. Much of the financial complex is still built on shuffling pieces of paper around. The recent Gamestockstonk highlighted how vulnerable the system is when memes travel at the speed of milliseconds and securities take two days to clear. Tokenisation of stocks is inevitable.
And then there are NFTs. Here I would say the best analogy to understanding this paradigm shift is the property deeds office. The transfer of title deeds is a painful, extremely slow, and expensive process. Lost papers can bottleneck the whole system. Imagine if every property had a unique, impermeable, tamper-proof identity on the blockchain, could be transferred immediately, and was on an open-ledger that any financial institution or other interested party could immediately and independently verify.
Technological evolution is inevitable. Crypto was initially led by Revolutionaries. The Evolutionaries always follow.